Flows in a Fordist and a Post-Fordist Production SystemIn a Fordist production system, supply chains are often discontinuous and subject to delays. Links between different functions generally imply an accumulation
of inventory (raw materials, parts and manufactured goods) before their
usage (processing, manufacturing and distribution). The high output
levels
of an assembly line require warehousing of all required parts in the
vicinity. This cannot occur without a stable and constant demand, which
is assumed to absorb a supply-oriented production. The transport function
in such an environment is relying on economies of scale with
delays at transfer points such as ports and rail yards.In a Post-Fordist environment, supply chain management tends to reduce
the need for warehousing and increase the integration between elements of the
value
chain in a complex network of relationships (e.g. outsourcing). This system is more demand-derived
with its elements adapting to constant fluctuations in the
amount, origins and destinations of cargo flows. Under such
circumstances, the transport function
is closely integrated to production and distribution and is
the main element minimizing delays and warehousing. A share
of the inventory is in circulation.